Socialism for the Uninformed (city, company, independent, ratings)

[dv1033]

Originally Posted by InformedConsent

Wall Street created the mess? Nope. But if you believe that's true, why didn't the Federal Reserve create $2 trillion in QE to buy MBS issued by Wall Street?

Wall Street could have simply made less loans.....

[InformedConsent]

Originally Posted by pknopp

It was the quid pro quo.

Are you saying the ratings agencies shouldn't take Fannie and Freddie at their word? FWIW, I agree. HUD and F&F f*cked up everything.

Government directives interference in the market. Exactly why socialism has never worked. Hellooooooo... Venezuela.

[InformedConsent]

Originally Posted by dv1033

Wall Street could have simply made less loans.....

And that would have eliminated the $2 trillion in QE the Federal Reserve had to create to buy GSE MBS, how?

[freemkt]

Originally Posted by pknopp

It was the quid pro quo.

who doesn't want more quid?

[LearnMe]

Originally Posted by InformedConsent

Yes they did. I posted the quote and the link to the SEC document earlier in this thread.

Those are FINDINGS not ADMISSIONS, also not to be confused with the SEC's "admission policy," requiring admissions of wrongdoing as a condition of settling SEC charges in certain cases.

But again, never mind me as no doubt we drift yet again from the core more important fundamental truths of these matters, away from the truth and always toward the goal of blaming all that goes wrong on government while giving credit for all that goes right on the private sector. Okay, I got it!

[dv1033]

Originally Posted by InformedConsent

And that would have eliminated the $2 trillion in QE the Federal Reserve had to create to buy GSE MBS, how?

Lol. Well obviously less bad loans, less QE.

[InformedConsent]

Originally Posted by LearnMe

Those are FINDINGS

OK... The SEC FOUND that...

"...each rating agency publicly disclosed that it did not engage in any due diligence or otherwise seek to verify the accuracy or quality of the loan data underlying the RMBS pools they rated during the review period. Each rating agency’s “Code of Conduct” (available on each rating agency’s website) clearly stated that it was under no obligation to perform, and did not perform, due diligence. Each also noted that the assignment of a rating is not a guarantee of the accuracy, completeness, or timeliness of the information relied on in connection with the rating."

[InformedConsent]

Originally Posted by dv1033

Lol. Well obviously less bad loans, less QE.

The $2 trillion in QE went to buy GSE MBS, not Wall Street MBS.

[dv1033]

Originally Posted by InformedConsent

The $2 trillion in QE went to buy GSE MBS, not Wall Street MBS.

Again make less loans. There was no requirement X amount loans were required in X period of time.

[dv1033]

I actually read the SEC from informed and either he is being misleading or didn't understand it. And it clearly outlines how the rating agencies were at fault.